TRAD QUIZZ 2

A fixed amount added to the premium of a given policy regardless of policy size is known as

• A. policy fee

• B. policy reserves

• C. policy values

• D. extra premium

Persuading a policyowner, directly or indirectly, to surrender or lapse a policy on one company and replacing it with a policy in another company is

• A. rebating

• B. twisting

• C. knocking

• D. discounting

Which of the following is the least important reason for requiring that insurance agents be licensed?

• A. To establish and maintain high professional and ethical standards

• B. To protect the public

• C. To give the government adequate control over the conduct of agents

• D. To provide additional income to the government through license fees

Rebating is

• A. dating the policy a month in advance

• B. giving false information

• C. twisting

• D. premium discrimination against policyholders

The Parties involved in life insurance contract are the

• A. Insurance company and agent

• B. Insurance company and insured

• C. Agent and insured

• D. Insured and Beneficiary

Life insurance can provide money when income stops because of

• A. disability

• B. death

• C. retirement

• D. all of the above

A father enters into a life insurance contract on behalf of his child. In this case, the father is the

• A. insured

• B. beneficiary

• C. insurer

• D. applicant-owner

An insurance agent’s license can be revoked for

• A. fraudulent practices

• B. violation of any provision of the Insurance Code

• C. misrepresentation in the application for license

• D. any or all of the above

One example covered under the ethical practices and procedures is

• A. keep all policyholders information confidential

• B. always recommend a will

• C. never drink in front of a client

• D. always pick up the first premium with the application for insurance

When you bought an insurance policy on your wife’s life you were 27 and she was 26, but you stated that you were 26 and she was 27. Five years later your wife died. The insurance company will pay

• A. the face amount

• B. the face amount adjusted for misstatement of age

• C. the sum of the premium paid

• D. slightly less than the face amount